NC Coastal Insurance Fix?

Posted by Benji Riggins on July 15, 2009 under Insurance News | Be the First to Comment

A state House committee examining a fix for an underfunded coastal insurance program has rejected a bid to keep the current coverage maximum at $1.5 million per home.

The House Finance Committee on Thursday approved a complex, multi-level patch on the Beach Plan, a vital insurance provider for homes in 18 coastal counties.

The Beach Plan has promised insurance coverage to properties valued at nearly $74 billion, but its resources top out at about $2.4 billion. Beyond that, the reform bill would turn to all of the state’s property owners to pay claims.

Lawmakers are considering capping how much insurers would be assessed after a bad hurricane and shifting the remaining rebuilding costs to all North Carolina policyholders.